Rental Property Investor · New York, NY · Member since 2020 · 8 posts · 0 votes
A realtor told me that New York City would charge a higher property tax on an investment property and suggested that I change my mailing address for tax bills from my primary residence to my investment property in order to save tax. I haven't been able to verify this info. Anyone knows about it?
And if it is true and I follow this advice to reduce a property tax, I would think that I would lose Federal tax benefits related to investment properties. Or am I wrong?
Your realtor is talking about the STAR program which is a property tax credit and exemption (not a reduction or change in assessment) for those that use their home as a primary residence. The benefit is probably not worth committing fraud over.
@Kikko Maeyama this doesn't really seem like it makes any sense. How would changing the address for where your tax bills are delivered change the rate assessed by the municipality?
I guess if you want to be sure, you can ask a CPA. @Basit Siddiqi, any insight?
I agree with everyone else... That makes absolutely no sense. Property taxes arent determined by where you live and dont live. Owner occupying an investment would help reducr mortgage rates and homeowners insurance rates but not property tax.
I’m not sure what you are referring to Federal Tax deductions you are referring to but a lot of deductions are very similar whether you live in there vs investment property. For this you should consult your CPA because every case and use is different for everybody.
Your realtor is talking about the STAR program which is a property tax credit and exemption (not a reduction or change in assessment) for those that use their home as a primary residence. The benefit is probably not worth committing fraud over.
Thank you for your replies, and as Mr. Lee said, it appears that the realtor was referring to STAR credit. I am a newbie and in the process of educating myself and looking for a suitable property to invest. From now on, I know to ask sellers if their property tax amounts include STAR credit or not.